Koltin on Compensation: A Philosophical Guide for Professional Service Firms
Partner Russell Shapiro recently sat down with Allan Koltin, an accounting and professional service firm consultant, for another engaging one-on-one conversation. The two discuss the intricate dynamics of partner compensation and its impact on a firm’s culture, accountability, and long-term strategy. They address such topics as how to compensate partners with significant leadership roles, the appropriate ratio of highest to lowest paid equity partners, and the compensation differences between partners inheriting books of business versus those who build them.
To listen to the discussion, click here or click on the links below to jump to a specific topic:
- How does compensation impact culture, accountability, & long-term strategy?
- How do you compensate partners differently in light of their goals and roles?
- What portion of partner compensation should be at risk?
- How do you compensate partners with significant leadership roles?
- How do you view the term “highest & best use” and how should it be used in determining a partner’s compensation?
- How is compensation impacted by the private equity model?
- How can businesses incorporate economic incentives into their compensation plan if they aren’t PE-backed?
- Should there be a relationship between partners’ contributed capital and their earnings?
- Is there a proper ratio for the highest to lowest paid equity partner?
- Should a partner inheriting a book of business be paid the same as a partner who built it?
- How do you handle an income partner who is outperforming an equity partner?
- Should seniority at all be a factor in compensation?
- Should partner compensation be open or closed?
- How should firms compensate high-performing partners in a down year?
- Final Thoughts